India's Largest Conglomerate Strengthens Shipyard Business With Strategic 10 per cent Stake Acquisition In Nauyaan Shipyard Private Limited

Over a three-year period, the stock's return has also been negative, at -9.14 per cent.

Reliance Industries Limited has made a strategic move by acquiring 10 per cent more equity in Nauyaan Shipyard Private Limited from its subsidiary Nauyaan Tradings Private Limited. The acquisition made for Rs 51.72 crore is a related party transaction done on the basis of an arm’s length basis. The purchase of the stake was made from Welspun Corp Limited and the sale will be done after adjusting for expenses and net current assets. The acquisition is set to be completed by April 11, 2025. This is in line with Reliance’s objective of expanding its shipyard business and there is no interference from the company’s promoter group or any other group companies in this deal.

Dhirubhai Ambani founded the company which is now headed by Mukesh Ambani and has a diversified business with major focus on several key sectors. The company’s oil to chemicals segment, which accounts for 57 per cent of its revenue, includes the process of cracking crude oil to produce fuels, polymers and other products.

Reliance operates the world’s largest single-site refinery complex and has a refining capacity of 1.4 million barrels per day. In the retail segment, which constitutes 23 per cent of its revenue, Reliance is India’s largest retailer with over 15,200 stores and customer base of 19 crore. Jio its digital services business holds 36 per cent market share in India with 41 crore subscribers. The company also has interest in oil and gas exploration, media and entertainment and has seen significant growth in gas production from its Krishna Godavari basin operations.

Reliance Industries Limited is trading at Rs 1,185.60, hovering close to its 52-week low of Rs 1,161.70. The stock had previously touched a 52-week high of Rs 1,601.05. At its current market price, the company's market capitalisation stands at an impressive Rs 1,604,398 crore.

Despite its size and significance, Reliance Industries has witnessed a challenging year in terms of stock performance. The stock has delivered a one-year return of -19.85 per cent, indicating a notable decline. Over a three-year period, the stock's return has also been negative, at -9.14 per cent. The company is currently trading at a price-to-earnings (P/E) ratio of 20.18, reflecting investor sentiment amidst a period of subdued growth.

Disclaimer: The article is for informational purposes only and not investment advice.